China’s biggest shipping firm COSCO has suspended all shipping operations to Israel, Israeli financial news website Globes reported on Sunday.
Globes did not cite any sources to the information and said that COSCO was yet to notify international shippers of its decision.
COSCO offices in Israel declined comment. Israeli port officials said they were checking the report.
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COSCO’s decision comes on the back of increasing tensions in the Red Sea, one of the most used trade routes in the world.
The Iran-aligned Houthis of Yemen have been attacking shippers in the Red Sea since last month in a campaign they say aims to support Palestinians in the Gaza war.
The attacks have forced many global shippers — including Maersk, the world’s largest — to suspend journeys through the Red Sea. Those disruptions have led to a spike in cargo rates and insurance premiums for shipping firms.
While Globes did not include details behind COSCO’s move in its report, it cited China’s close relationship with Iran as the reason for its decision.
The report said COSCO’s decision came even as Chinese firms are at a low risk of being attacked by Houthi militants given the close ties between Beijing and Tehran.
COSCO’s decision, if confirmed, will have significant impact on Israeli shipper ZIM which depends on the Chinese firm for transportation in the Far East, the report added.
It further said that COSCO’s move will also impact the Haifa Bayport, which is operated by China’s state-owned Shanghai International Port Group (SIPG).
Chinese state-owned COSCO is the fourth-largest container shipping line in the world.
- Reuters, with additional inputs from Vishakha Saxena
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